Elliott Ups Celesio Stake

Jan 21 2014 | 9:49am ET

Elliott Management is apparently not discouraged by the failure of McKesson Corp.'s bid for rival pharmaceutical distributor Celesio.

The activist hedge fund has increased its voting stake in Celesio to 24.08%. New York-based Elliott also owns convertible bonds, which come due in October and April 2018, which could increase its voting stake to 32.01%.

Elliott had agreed—after McKesson increased its US$8.3 billion offer for Celesio—to tender its shares and sell its convertible bonds. But in spite of Elliott's support, the offer failed to attract sufficient support and was withdrawn last week.

That sent Celesio shares down sharply, a move that Elliott appears to have taken advantage of. Prior to accepting McKesson's richer offer, Elliott indicated it was not concerned if the deal failed, saying that Celesio could sell its wholesale and pharmacy businesses separately.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…